Data center developer looks west, backs power upgrades near Fargo

Data center developer Applied Digital is investing $75 million into power system upgrades in eastern North Dakota to support its new artificial intelligence data center near Harwood, located between Fargo and Harwood. The investment covers an electrical substation and high-voltage powerline, which Minnkota Power Cooperative will own and operate, benefiting the regional grid and other customers. A Public Service Commission public hearing for this power project, officially called the Agassiz Transmission Line and Substation, is scheduled for April 2 in Fargo. The Harwood facility, a $3 billion project known as Polaris Forge II, will house AI computers requiring approximately 280 megawatts of power and is expected to be fully operational by early 2027, employing around 200 people. Applied Digital's earlier North Dakota projects in Ellendale and Jamestown were for cryptocurrency mining, while the new facilities at Ellendale (Polaris Forge I) and Harwood utilize water-cooling systems designed to be closed-loop and use minimal water. The company is also looking to expand into western North Dakota, having held an informational meeting in Center, Oliver County. Shortly after this meeting, the Oliver County Commission voted to enact a 180-day moratorium on data centers to develop regulatory rules. Residents expressed concerns about potential noise pollution, high water usage, and increased utility bills. Similarly, Mercer County, where Basin Electric Power Cooperative and wind energy company NextEra have proposed a data center, passed a one-year moratorium on data centers earlier this month. Farmer Mike Berg supported the moratoriums, advocating for proper planning and safeguards for residents and industry. A public meeting for Basin Electric's River Run Energy Center is set for March 30 in Stanton. Applied Digital stated it continues to monitor opportunities in areas like Oliver County where conditions are suitable for long-term investment. Minnkota Power Cooperative spokesperson Ben Fladhammer emphasized that Applied Digital's investment helps fund necessary grid upgrades that would otherwise fall to existing customers. Cass County Electric Cooperative, which will sell power to the Harwood data center, expects the facility to nearly double its peak demand but assures rates for existing customers will not increase. The data center will use diesel generators and has agreed to curtail load if needed. The Dakota Resource Council, an environmental advocacy group, held a meeting in Harwood, expressing concerns that cooperative member-owners should not bear the financial risks or higher electric rates to support large corporate electricity users.